Egypt - The Future of Air Power Markets & Technologies Outlook – 2013-2018

The events of the past two years in Egypt will have a significant impact on Egypt’s air power makeup and evolution. Currently, 80% of Egypt’s defense budget is funded by the US; as a result the Egyptians are required to spend much of that funding on US equipment.

And indeed, new, US-made, aircraft on order are due to arrive in Egypt in 2014. Egypt’s economic condition will continue to worsen over the coming years, leading to a severe lack of funds, a poorly functioning economy and a dearth of major oil reserves. It is possible that other Arab countries (e.g., Saudi Arabia), the US and other Western allies may finance the modernization of Egypt’s aircraft inventory to promote regional stability.

This new, triple-scenario, report examines various evolutionary options in post-revolution’s Egypt, and forecasts that a growing portion of Egypt’s air power-related purchases will be dedicated towards upgraded munitions, avionics and UAVs – mostly supplied by the US.

Furthermore, Egypt will experience an increase of air power platforms and associated maintenance, avionics and munitions between 2016 and 2018. This growth in air power will coincide with the drawdown of US and Western influence in the region.